The Money You Didn't Know You Had: Government Programs That Could Save Ontario Buyers Thousands in 2026

In the past year, the federal and Ontario governments have introduced some of the most significant home buyer relief this country has seen in a long time. Most people either didn't notice or assumed it didn't apply to them.

Here's an overview of what's active right now and who it genuinely helps.

The Savings Tools

The First Home Savings Account (FHSA) lets you contribute up to $8,000 per year to a lifetime maximum of $40,000. Contributions reduce your taxable income, and withdrawals for a qualifying home purchase are completely tax-free. The RRSP Home Buyers' Plan lets you withdraw up to $60,000 per person tax-free, with a couple accessing up to $120,000 combined.

Here's what most people miss: both programs can be used on the same purchase. That's up to $100,000 per person, or $200,000 for a couple, in combined tax-advantaged down payment money. It is the most powerful combination available to Canadian first-time buyers right now.

One practical note: funds must be sitting in your RRSP for at least 90 days before you can withdraw them. Buyers who try to contribute and withdraw in the same season sometimes miss this window.

The Tax Credit

First-time buyers can claim a $10,000 non-refundable tax credit on their federal return for the year of purchase, translating to roughly $1,500 in real savings. Claimed on line 31270 of your T1. Simple, and easy to forget.

The New Build Programs

The federal GST rebate under Bill C-4 eliminates GST on new homes up to $1 million for first-time buyers, saving up to $50,000. The Ontario HST rebate runs April 2026 to March 2027 and removes the provincial portion of HST on new homes up to $1 million, saving up to $80,000. Combined, that is up to $130,000 in tax savings on a qualifying purchase.

The Ontario Land Transfer Tax Rebate

First-time buyers get up to $4,000 credited at closing automatically through their lawyer. If it is missed, you have up to 18 months to apply afterward.

The Eligibility Traps Worth Knowing

For the federal GST rebate on new builds, both partners on title must independently qualify as first-time buyers or the rebate is lost entirely. For the Ontario land transfer tax rebate, if your spouse owned a home you lived in together at any point, the rebate is gone even if you personally have never owned.

These come up more often than you'd think. Know them before you structure your purchase.

Thursday's article takes an honest look at how all of this lands specifically in the Muskoka market, and who these programs genuinely help in cottage country.

Lisa Selvage is a Muskoka-based real estate professional with eXp Realty, specializing in waterfront properties, lifestyle-driven relocations, and luxury cottage country living.